The Belgian midfielder, according to 'Sky Sports', has arrived in England to discuss a contract with Wolves and subsequently undergo a medical.
Dendoncker, 23, has made over 170 appearances for the Belgian Pro League side in all competitions, as well as having six caps for the Belgian national team.
The player also featured in Belgium's World Cup squad, in which Roberto Martinez's side reached the semi-finals and also won the third place play off against England.
Wolves have made a number of new signings this summer, most notably Portuguese international duo Joao Moutinho and Rui Patricio, and highly-rated winger Adama Traore from Middlesbrough, who Wolves signed for a club-record £20m.
Nuno Espíritu Santo is also rumoured to be in talks with Manchester City's Oleksandr Zinchenko, with a £16m move looking likely before the deadline.